The Hong Kong Securities and Futures Commission (SFC) has introduced new guidelines for licensed virtual asset platforms and funds involved in staking.
Goals of SFC's New Rules
The new SFC rules highlight the benefits of staking, such as enhancing blockchain security and allowing investors to earn yields in a regulated environment. These guidelines enable licensed crypto platforms to offer additional services, supporting the SFC's plan to grow Hong Kong's virtual asset market.
Risk Management in Staking
The SFC has laid out clear rules for licensed crypto platforms offering staking, aimed at boosting investor protection. Platforms must safeguard staked assets, prevent service errors, and be fully transparent about the risks involved. The SFC has also revised its circular, allowing SFC-authorised VA Funds to stake assets, but only through licensed platforms or approved institutions.
Hong Kong's Crypto Strategy
Hong Kong is actively enhancing its cryptocurrency regulations to position itself as a leading digital asset hub. New licensing regimes for over-the-counter virtual asset trading and custody services are expected in February 2025, seeking to improve market efficiency and investor safeguards.
Hong Kong's regulatory initiatives in the crypto space emphasize the importance of protecting investor assets, which in turn fosters greater trust in virtual assets.
